Diageo : An Analysis on the Global spirit maker and its operations across
"Diageo is one of the biggest and celebrated names in the spirit industry. It has been churning out one chart buster after another over a sustained period of time since its inception. It products enjoy a great deal of appeal and reach, being counted as one of the largest selling brands in its category. Diageo has a brand presence in over hundred and eighty countries with an estimated work force of twenty thousand. The company has offices in around eighty countries that cater to the ever changing needs of the industry. It is headquartered out of London, United Kingdom and has one of the largest selling product ranges among the product line. It is the producer of Johny Walker, Baileys, Smirnoff (the best selling beer in the world) and Guiness (the largest selling stout in the world). It is the exclusive distributor of the international tequila brands called as JHose Cuervo. Apart from all this, it is also one of the largest stake holders (around 34 percent of the controlling stakes) in the company called as Moat Henessy.
Diageo was born out of the merger of the two companies, Guiness and Grand Metropolitan. The company faces a lot of competition from established players as well as new names in the market. The company faces stiff competition from the likes of Pernord Ricardo and Bacardi The market has been showing a robust growth over a period of time. The estimated rate of growth in the market is around three to four percent. The organization also needs to evolve constantly as the industry is undergoing rapid changes. According to the industry lifecycle, the alcohol industry is in the maturity stage and the growth ahs to be leveraged by brilliant marketing moves. There are also a list of underlying changes that have been affecting the alcohol industry. The company has been looking at growth figures that are showing a rapid movement towards the beer and wine market.
There is a rapid decline in the spirits industry. Nowadays, the consumers are also more interested in the complete production process of alcohol and the related products. This is a deciding factor in the determination of the market shares. The rapidly declining sales of spirit have been a major cause of concern in the European market. The industry is further set to change owing to the technological developments in the alcohol industry. Although Diageo faces considerable market challenges, the company is poise to grow to greater heights and intoxicate spirits along the way. "